Out of deference to individuals' privacy we have elected not to
comment on individuals. All people affected by our strategic
re-alignment were informed that their last day at Fab will be
February 15, 2014.

By our count, that should reduce the fashion and design
e-commerce firm's headcount to about 359 people — almost half the
number of employees it had earlier this year when 700 workers had
jobs there.

The company is in the middle of its second "pivot," or
strategic change in direction. It began as a gay community site
and morphed into a flash sales company, selling email daily
deals.

More recently, Fab has tried to become a more traditional
e-commerce retailer that holds inventory until it is all sold
out.

We also understand that Fab has pulled back on its marketing. It
was once one of Facebook's biggest advertising spenders, but our
sources say Fab has become much more judicious with its marketing
money.

Fab is apparently not going bankrupt, though. Earlier this year,
it raised $165 million in new investment this year alone, for a
total of $336 million in all venture funding.

Whether CEO Jason Goldberg can turn the company around is an open
question. He has lost COO Beth Ferreira, chief product officer
David Paltiel, HR
head Allison Rutledge-Parisi* and cofounder Bradford
Shellhammer from the company recently.

... while as a company we do not discuss individuals without
their consent it is untrue that our head of HR is part of the
action taken today; she is still an employee at Fab now and for
the foreseeable future.